Business Digest | UPS forecast comes in on low side

UPS forecast profit for this year that trailed analysts' estimates as a weak global economy weighs on shipping.

Earnings per share will be $4.80 to $5.06, the company said in a statement. Analysts projected $5.13, the average of 25 estimates in a Bloomberg survey.

UPS' growth is constrained by a sluggish worldwide economy and disputes over the U.S. debt ceiling that erode shipping demand and confidence, Chief Executive Officer Scott Davis said. Investors and analysts use the company as an economic gauge because it handles goods as varied as auto parts and pharmaceuticals.

"This guidance is obviously going to be seen as a negative," Kevin Sterling, a BB&T Corp. analyst in Richmond, Va., with a buy rating on the shares, said in a telephone interview. "A lot of people look to UPS as a bellwether of the economy, and what are they saying? Well, maybe things aren't as good as we initially thought."

Frito-Lay to extend Doritos-Taco Bell link

The snack-food giant plans to roll out its Doritos in a "Taco Bell" flavor as a limited-time product this spring, aiming to capitalize on the popularity of the Doritos-flavored tacos introduced by the fast-food chain last year.

Frito-Lay says it will be the first time since the 1990s that it has offered Doritos branded with the logo of a national restaurant chain.

Nacho Cheese Doritos Locos Tacos has been one of the biggest new menu items in recent times, with Taco Bell selling more than 300 million of the tacos with flavored shells since their introduction in March.

They were such a hit that Taco Bell, part of Louisville-based Yum! Brands, postponed a follow-up Cool Ranch flavor to early this year to make sure there was enough capacity to make the shells. The chain also plans to introduce a taco in "Flamas" flavor, a Doritos variety available only in select regions of the country.

GM truck production to dip as redesign looms

General Motors Co., which saw pickup inventories rise 24 percent last month, will take out 10 weeks of truck production as it prepares to introduce a redesigned Chevrolet Silverado and GMC Sierra in the second quarter.

After finishing last year with a pickup inventory almost in line with targets, GM reported that the number of trucks it has on hand rose to a 117-day supply at the end of January from 80 a month earlier. The 10 down weeks are a total for GM's three pickup plants to allow for the changeover, Jim Cain, a company spokesman, said in a telephone interview.

High inventory levels have tested Detroit-based GM's resolve not to revert to heavily discounting vehicles to boost sales, which can hurt brand and resale values.

The company has to balance having enough of the older version to sell to customers while not having so many that it hurts the rollout of the new product.

"We feel very good about where we are, going into an improving industry, a segment that has opportunity," Kurt McNeil, GM vice president of U.S. sales operations, said during a conference call.

New GM lab space to aim at faster tech upgrades

General Motors will add a wing to its engine and transmission development headquarters in Pontiac, Mich., with hopes of getting new technology into cars and trucks much faster.

The automaker announced that it would spend $200 million to add 138,000 square feet of new labs in Pontiac, allowing it to consolidate work from four other facilities.

The move won't create any new jobs, but it will bring 400 more positions to the Pontiac headquarters, raising its total employment to 3,900 from 3,500. The positions will be moved from GM facilities in Castleton, Ind., Wixom, Mich., Torrance, Calif., and Warren, Mich. The 400 jobs also include the previously announced move of GM's fuel cell development center from Honeoye Falls, N.Y., to Pontiac.

Work on the new wing is expected to start in the spring and be finished during the second half of 2014.

Louisville, Kentucky • Southern Indiana

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Business Digest | UPS forecast comes in on low side

UPS forecast profit for this year that trailed analysts' estimates as a weak global economy weighs on shipping.